Transaction date of an advance

Learning objectives

• Determine the date of the transaction for advance consideration paid or received (IFRIC 22).L2, L3
• Calculate, from the case data, the translated amount or the exchange difference relating to the concept “Transaction date for advance consideration”.L2, L3

Normative references

The syntheses of the reference register are written in French: only the paragraph reference is shown here.

3 questions

• Valdor, whose functional currency is the euro, pays a supplier an advance in dollars on 10 February for a machine that will be delivered and recognised in April. Which date determines the rate applicable to the prepayment asset?L2
• Orval pays an advance of {advance_foreign_amount} at a date when the spot rate is 0.91 euro per 1 dollar. Delivery takes place later, at a rate of 0.95 euro. Calculate the amount in euros of the prepayment asset.L2
• Jarnac pays {advance_foreign_amount} to a British supplier for goods to be delivered later, at the spot rate of 1.14 euros per 1 pound at the payment date, i.e. {advance_functional_amount}. Post the entry recognising the advance.L3